Carnival Corp Ltd.CCL

Carnival Corp Ltd. Leases Disclosure

10-KFiled Jan 27, 20262 min read
Leases
The components of expense were as follows:
November 30,
(in millions)202520242023
Operating lease expense$233 $215 $213 
Variable lease expense (a)$209 $211 $116 

(a)Variable lease expense represents costs associated with our multi-year preferential berthing agreements which vary based on the number of passengers. These costs are recorded within commissions, transportation and other in our Consolidated Statements of Income (Loss). Variable lease expense related to operating leases, other than the port facilities, were not material to our consolidated financial statements.

During 2025, 2024 and 2023, the cash outflow for leases was materially consistent with the lease expense recognized and short-term lease costs were not material for the periods presented.

Right-of-use assets obtained in exchange for new and amended operating lease liabilities was $103 million in 2025, $247 million in 2024 and $108 million in 2023.

Weighted average of the remaining lease terms and weighted average discount rates are as follows:
November 30, 2025
November 30, 2024
Weighted average remaining lease term - operating leases (in years)1112
Weighted average discount rate - operating leases5.4 %5.9 %

As of November 30, 2025, maturities of operating lease liabilities were as follows:
(in millions)
Year
2026$233 
2027227 
2028212 
2029167 
2030
133 
Thereafter843 
Total lease payments1,816 
Less: Present value discount(463)
Present value of lease liabilities$1,353 
For time charter arrangements where we are the lessor and for transactions with cruise guests related to the use of cabins, we do not separate lease and non-lease components since (1) the lease on a standalone basis would be classified as an operating lease and (2) the timing and pattern of transfer for the lease component and associated non-lease component are the same. As the non-lease components are the predominant components in the agreements, we account for these transactions under the Revenue Recognition guidance.

Historical Timeline

Fiscal YearFiled
2025Jan 27, 2026Showing above
2024Jan 27, 2025
2023Jan 26, 2024
2022Jan 27, 2023
2021Jan 27, 2022

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

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